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The main event yesterday was the ECB meeting, but little news came out of Frankfurt, notes the research team at Danske Bank.

Key Quotes

“Neither the press release nor the press conference 6 which, to our knowledge, was the shortest press conference in ECB history, with reporters having no further questions after 25 minutes of questions 6 contained much news.”

“Consequently, Mario Draghi unsurprisingly kept his pledge to keep rates unchanged ‘at least through the summer of 2019’. There were also no new signals on the reinvestments about which Draghi said ‘they didnt discuss’.”

“This means that we do not have more colour on the idea of smoothing the reinvestments. But Draghi underlined that the capital key is still the guiding principle. Hence, there was no support for media speculation that in the future, we could see bigger reinvestments in high debt countries at the expense of low debt countries.”